Stabilizing Trends in Tungsten Prices Amid Supply Chain Dynamics

Analysis of latest tungsten market from Chinatungsten Online

The overall trend of tungsten prices is stabilizing, with tight supply and strong demand at the tungsten ore end still providing strong support to the overall industry chain.

 There are still partial upward pressures in the market, but due to strong downstream reluctance to accept higher prices, the price reflects a lag. The pace of raw material procurement remains relatively conservative and slow, with limited overall market liquidity, only maintaining basic operations. Mainstream prices remain stable at high levels, with all parties awaiting any updates in the news that could potentially impact the market.

The price of 65% black tungsten concentrate has maintained temporary stability around $22,428.6/ton. During the period of central environmental inspections, the attitude of holders to maintain market stability has also become more determined. Currently, the quantity of tungsten concentrate in the market remains relatively small, with only basic circulation maintained due to some profit-taking outflows, and merchants quoting at higher levels.

The APT (Ammonium Paratungstate) price is hovering around $375.1/mtu. Calculated based on the current price of tungsten concentrate, smelters are still in an inverted or stagnant state, with pressure unabated and overall smelting operating rates remaining low. Senior industry insiders who have been deeply involved in the industry for decades have detailed to Chinatungsten Online that, considering the current price of $36,714.3/ton of tungsten ore plus various costs such as mining consumption and processing taxes, the reasonable price of APT should be around $395.5/mtu to achieve an average profit margin of about 5% in the non-ferrous metal industry. Obviously, the current APT price in the market is unsatisfactory.

The price of tungsten powder is stabilizing at around $49,571.4/ton, while the price of tungsten carbide powder remains stagnant at around $48,571.4/ton. Cost support stabilizes the market at high levels, with resource circulation mainly based on actual demand. Chinatungsten Online, based on the opinions of various parties attending the Tungsten Association's mining, smelting, and trade branch meeting in Nanning, and considering the overall industry costs and operational capabilities, calculates and analyzes that, based on the current APT market price, the price of tungsten powder should be $51,857.1/ton; whereas, based on the APT price of $395.5/mtu that meets the average profit level of the non-ferrous metal industry, the fair and reasonable price of medium-grain tungsten powder in the market should be $54,285.7/ton. However, the current market situation has not yet reached this ideal state, which reflects both the potential for further market upside and the helplessness of various parties in the tungsten smelting sector.

Prices of tungsten products on May 24, 2024

APT price image

Picture of tungsten acid 

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